Roseanna Cunningham MSP, Cabinet Secretary for Environment, Climate Change and Land Reform
The Committee will be aware of the Scottish Government’s position on the result of the EU Referendum: We will work to protect Scotland’s relationship with, and our place in, Europe. This is in line with the clearly expressed wishes of the people of Scotland. Our priority is to protect all of Scotland’s interests; we will seek to embed ourselves as firmly as possible in the UK’s process of developing its negotiating strategy. Firstly, we will seek to make common cause with those of like minds across the UK, to try to reach the least-worst outcomes for the UK as a whole. This means remaining in the single market. Secondly, we will seek to explore differential options for Scotland. Our Standing Council on Europe is already working on a spectrum of options. Thirdly, we will ensure the option of independence remains open, if we conclude that it is simply not possible to protect Scotland’s interests in the UK.
The First Minister has set out five key interests which must be protected after Scotland voted overwhelmingly in favour of remaining in the EU.
Our interest in having influence -making sure that we do not just have to abide by the rules of the single market but also have a say in shaping them.
The Scottish Government will maintain our commitment to our environment and our natural assets. We understand that a healthy natural environment is critical to our success as a nation. It underpins our economy, our health, our landscape, and our way of life. Moreover, Scotland trades internationally on our reputation as a clean, green country which produces wholesome food and drink.
Scotland is recognised as a leader in the international response to climate change. Scotland has already exceeded its 2020 emissions reduction target. We are determined to maintain this position, and we will be setting even more ambitious targets through a new climate change bill and working hard to achieve them. Climate change targets are challenging, and the best way of achieving them is to continue with multilateral engagement and collective effort, especially to deliver the Paris Agreement commitments.
We believe that our success in developing high environmental standards has been strongly linked to membership of the EU. We have been supported in developing and maintaining our high environmental standards because the EU has arrangements for trade between partner nations which respect and promote progress in social and environmental protection. Moreover, it is clear that many of the environmental challenges we face do not respect national boundaries. Being part of the EU makes it easier to take the collective action needed to tackle these environmental challenges. Scotland gains strength and increased influence through being part of the EU’s common voice in international climate negotiations. Any diminishing of that common voice and diplomatic capability would weaken our influence in negotiations, where issues require a truly global response. It is important that bilateral trade deals support the achievement of environmental and climate change objectives. Whatever the good intentions of governments, we know that maintaining high standards is difficult without trading arrangements that allow this to happen.
Shortly after the EU referendum, the Scottish Government hosted an event for environmental stakeholders to discuss the implications of the result. The Scottish Government made clear that Scotland will continue to play its full part in contributing to EU-wide environmental policies. A number of key challenges were identified, particularly over the funding of EU projects (both in the short and longer term), the ability to attract talent from EU countries which is vital for our world leading agri-food and environment research institutes in Scotland, and challenges over maintaining environmental standards outwith the EU legislative framework.
The majority of matters relating to environment and climate change are within the devolved competence of the Scottish Parliament. For example, Scotland has its own legislative framework on climate change targets, environmental quality and nature protection. EU obligations in these matters are implemented in Scotland in a proportionate way designed to meet conditions in Scotland. Scotland also has its own regulatory and enforcement agencies including the Scottish Environment Protection Agency and Scottish Natural Heritage. The achievement of environmental goals and climate change targets in Scotland can be adversely impacted by matters that are within the reserved competence of the UK Parliament, as we have already seen with levels of support for renewable energy projects. It is important that the enquiry pays due regard to devolved competencies and the separate legislative implementation of EU obligations in the different nations of the UK.
The Scottish Government would welcome clarification from the UK Government on its intentions on legislative arrangements. It is our clear position that Scotland should remain part of the single market, likely requiring the continued adoption of EU environmental law relating to the internal market into Scottish law.
Key stakeholders have raised questions about the future arrangements for nature protection, and how these could be reflected in trade agreements. The Scottish Government is committed to continued protection of natural assets and biodiversity, and we need to ensure that arrangements within the UK allow for this commitment to be respected in future trade negotiations.
We also note that there are many international treaty commitments and international standards for environmental protection and climate change, many of which are currently met through the implementation of European Directives. In addition, there needs to be clarity about the UK Government’s intentions with respect to the separate legal framework of the Euratom treaty.
The EU has been a catalyst for driving up environmental standards since the UK joined in 1973. The Scottish Government resolutely believes that membership of the EU delivers considerable social, economic, environmental and cultural benefits for individuals, businesses and communities across Scotland.
There are many EU environmental policies which we would want to introduce anyway, irrespective of whether we are part of the EU. They are the right things to do and will help us to achieve our ambitions for Scotland’s environment and society. For example, the Commission’s proposals on the circular economy and waste are in tune with the Scottish Government’s approach, with Commissioner Vella helping us to launch our own circular economy strategy in February 2016.
The Scottish Government would welcome clarification from the UK authorities of their intentions for the future development of environmental policy, and how this will relate to trading arrangements with the EU and other trading partners. It is our position that Scotland should remain part of the single market, which brings with it a clear set of environmental obligations, which would evolve in line with EU law. Clearly, if we were to leave the EU but remain in the single market, there would be an undesirable loss of influence over the development of EU law compared with the situation with obtains while we continue within the EU.
Many of the environmental challenges we face do not respect national boundaries, including climate change, and air and water quality. Being part of the EU
makes it easier to come together and take collective action to tackle these environmental challenges.
The Scottish Government would welcome clarification from the UK authorities on their intentions for trans-boundary environmental issues. Scotland has key interests, for example with respect to the North Sea and trans-boundary air pollution, and we should be fully involved in the discussion of future arrangements.
Scotland is recognised as a leader in the international response to climate change. Our work to decarbonise electricity generation has already made a sizeable contribution to the UK’s climate change goals, and only one other European nation has achieved a greater cut in greenhouse gas emissions. We are keen to maintain and enhance this position, and will be setting even more ambitious targets through a new climate change bill. Climate change targets are challenging, and the best way of achieving them is to continue with international collective effort, especially to deliver the Paris Agreement commitments.
The EU, with its commitment to developing a clean, efficient energy system to tackle climate change, has provided powerful support for the Scottish Government’s energy and climate priorities. The EU has led global efforts to reduce greenhouse gas emissions. It has driven the liberalisation and integration of national energy markets. EU targets have compelled domestic policy to support vast renewable energy investment throughout Europe. EU regulation has improved the energy performance of products and buildings, and limited the environmental impact of energy developments.
The EU’s legislative reach, market influence and climate diplomacy are increasingly intertwined in domestic UK and Scottish efforts to address the energy and climate ‘quadrilemma’ of ensuring secure, affordable and decarbonised energy supplies whilst ensuring that those energy supplies continue to drive competiveness and economic growth. Scotland gains strength and increased influence through being part of the EU’s common voice in international climate negotiations. Any diminishing of that common voice and diplomatic capability would weaken our influence in negotiations, where issues require a truly global response. The UK or Scotland, acting alone, will not be able to achieve the same impact as the EU in these global negotiations.
The Scottish Government would welcome clarification from the UK authorities on their intentions with respect to future climate change and energy policy and mechanisms. In particular, there is a need for early clarification of the UK Government’s plans for key elements of the European arrangements such as the EU Emissions Trading System, which covers 45% of Scotland’s emissions and permits Scottish energy intensive industries and power generators to participate in the world’s largest carbon market. In addition, we want to understand the UK Government’s plans for continued access to the EU internal energy market, and its related targets and legislation for renewable energy and energy efficiency, which are vital to delivering our climate ambitions.
UK and EU energy supply markets are integrated to varying degrees: gas supply is highly integrated; electricity, increasingly; and oil, less so. Already, these supply markets have been affected by exchange rate fluctuations and there is potential for any new trade tariffs or energy security safeguards to further impact on these supply markets.
The instability and doubt introduced through the prospect of Brexit could set back the achievement of goals and targets, especially with respect to climate change. The Scottish Government needs to be fully involved in the development of the UK position on the future relationship with the EU, and the UK Government needs to move quickly to reduce the level of uncertainty about these future arrangements.
The Scottish Government would welcome clarification from the UK authorities on the future relationship they intend having with the EU on environmental and climate change issues. We would also welcome clarification of how the UK will build international relationships to secure international environmental goals that are currently achieved through EU mechanisms.
We need to ensure that the Scottish Parliament has the full powers and discretion necessary to pursue devolved policy objectives, and if necessary the powers necessary to protect Scotland’s place in the single market, including the internal energy market. Remaining in the internal energy market is important to help meet our renewable energy and energy efficiency objectives; and to ensure on-going access for Scottish power generators and industry to EU carbon markets.
There will need to be coordination across the UK administrations on environmental policy, in particular because of important cross-border effects between Scotland and the rest of the UK. However, such coordination cannot be at the cost of discretion over the direction of policy in the separate countries of the UK.
28 November 2016